What do other high school students knoy, about budgeting? We asked high school students to share some tips on howto handle money, “Put yourself on a budget andy wise with your money. That ya youwon't be tempted to dipings your savings account.” Freshman, Florida “Getdirect deposit andput mong right into your savings account Then only spend the money yoy haveleft over.” Senior, Missouri “It's agood idea to start saving with your first paycheck because once you start spending it ishard: to stop Junior, Tennessee “Expenses don't just happen— they're always there. It takes Practice to save money and not spend it all.” Junior, Utah “Itis good to makea money plan. You should save a: percentage every month, even if itis nota lot” Freshman, TexasNetG Measure Your Progress Before watching the video, read each statement below and mark whether you agree or disagree in the “Before” column. Then, after watching the video, do it again using the “After” column to see if you changed your mind onany statement, ‘Agree Disagree 4 A __ Its important to know how to live within my means | and have good money habits. | (A 2 Lexpect and would like my parents to stop ‘supporting me before age 25. (4 _ 3: Lam knowledgeable about money management | including budgeting and saving Al 8 8 E 4. | am prepared to deal with the adult financial world v | after school. 5. | know how to balance and reconcile my checking account. Ky AN © © & ff «& R) &) [A __ 4. [know how to write a check. A 7. {have more than $100 in savings. | On average, how much money do you spend per week? $. What are your top three expenses? L Chapter 3: Budgetingye will happen yur money, then Ihave some. ujustletall rmoney happen nu, then youl, erwin.” > RAMSEY, Section 1: Budgeting 101 = = JONAIRES. Cash Flow Planning BUDGETING IS CRUCIAL to your are aton of other reasons to pull out success. Your income is your the budget formsevery month. Itmay responsibility, Ifyou get to retirement sound nerdy or old fashioned, but it withamountain ofdebtandnothing isn't. Keepingabudgetis really helpful tolive on, it'sno one else's fault. But for everyone. A simple, written plan beyond the obvious financial benefits can actually give you more money etanning bed of managing your money well, there _ to enjoy! » Moneyis -Itismoving all the time. So ifyou don’t make your money behave, you'll always wonder where it went, ewih people maa e » You must do a wri sees Ca ae UGéet is your blueprint for building wealth. You've Sot to have a game plan! » Abudget might seem inti, intimidating ag going bri * REMEMBER; Do, __9ne, Agood cash midating at first, but it is not as ‘oke! n't try to hav the partet budget or ne senieseom a flow plan ti dget for use you'll ne Foundations in p.PUR eC ul aes nas Describe in your own words what it means to have a budget. Four Reasons People Avoid Budgets Doing a budget or cash flow plan doesn't sound like much fun. In fact, people will come up with lots of excuses for not keeping a budget. 1. Ithasa. connotation. They believe that having a budget will constrict them and keep them from doing what they want to do. The reality is, managed money goes further and actually gives you more freedom. m, Abudget has been used to____ them. They’re constantly hearing, “It’s not in the budget!” The purpose ofa budget is to not spend more than you make. It is not intended to take all the fun out of your life. 3. They've never had a budget that: Don’t expect to write a perfect budget on your first try. You will make mistakes. With some practice, however, writing a monthly budget will become easier, “There areplenty ofwaystoget ahead. Thefirstis so basic I’m almost embarrassed to say it: Spend less than youearn.” PAUL: Aust ITHEROE nfinancial advisor WHAT'S THE DIFFERENCE BETWEEN ACASH FLOW STATEMENT AND ABUDGET? {spending} over lime period. A budg. written plan for saving. ving and spending. The cash flowstatementis reflective ofwhathas already taken place, anda budget sa proactive plan cof what willtake place, “Peopledon'tplanto Fail, they failto plan” ANONYMOUS3E SOME, THS AND, AGING MONEY, end money on, pgs. But when! e money, tend to re, gon /strengths is ortterm and not debt. One of esses is buying n'tneed. re, New York oy Four Reasons People Avoid Budgets Contin. 4, Paralysis from of what they will find. Some people are afraid to look at their BUISMAN It’s better to face those bills or debts and begin a ; proactively fix the situation. Tenors financial distress only allows the problem to get bigger. JOURNAL QUESTION: VIDEO 1.2 What do you think is most challenging when it comes to keeping a monthly budget? @Real Wealth Building Begins With Your Behavior Often the importance of smart money-management techniques gets overlooked. Whyis itimportant tomanage your money well? What impact does managing money well have on your long-term. financial well-being? Studies show that simple changesin your spending and saving habits wil help you build wealth, 1. Live on ess than you make. Don'tspend every dollar of your paycheck. 2: Keep on learning and finding ways to grow your income. 3. Write a monthly budget that in. cludes saving, giving and spending, Stick to it 4.Plan your spending and avoid impulse or unnecessary purchases. 5, Stay out of debt. Pay yourself first. This means assigning Portion of yourincome to saving and investing every month. 7. Use gifts and “extra” income wisely. You might be tempted to just blow money you receiv 8 a gift. I's okay to use some of that mone) to treat yourself to a ‘want.” But i's wise! Use a portion of it toward a money goal like Getting out of debt, saving for a car, saving ™ college, etc). Foundations in Personal Finance High School Edition